Swedish truck maker to boost production rate as demand recovers.

• Sweden dramatically hikes growth forecast
• Export companies hike Sweden’s economy

Scania, Sweden’s second biggest truckmaker, is recruiting 500 new employees at its European production units to deal with the increased production rate planned for the fourth quarter of 2010.

The Volkswagen controlled truckmaker last month reported a robust return to net profit well above analysts’ expectations as global demand recovered and operating margin reached a record-high.

“Scania is planning to speed up its production rate mainly because of the increase in demand from truck markets outside Europe. The European market is continuing to recover but remains at a low level in a historical perspective”, the company said in a statement Tuesday.

Scania hired 500 people at its European production units earlier in 2010 as well.

Orders for Scania's trucks and buses in the second quarter rose to 20,877 vehicles from 16,151 vehicles in the first quarter 2010 and from 8,223 vehicles a year earlier.

The heavy truck sector suffered very badly in the global economic slump, with orders plummeting. Germany's Daimler and Sweden's Volvo, which dominate the market with MAN, recently reported better-than-expected earnings as they too benefited from the recovery.

Volvo said last week that more than 200 laid-off employees are being called back to work at Volvo Trucks North American's truck assembly plant in Pulaski County.